Trade

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  • Trade
    • Visible trade
      • Goods that can be counted, weighed and given a value (e.g. foods)
    • Invisible trade
      • Trade of services (e.g. tourism)
    • Advantages
      • Economies of scale (Larger productions = increased sales cost)
      • Purchasing power (the amount of goods and services that can be bought)
      • Fewer domestic monopolies (dominant trades-people)
    • Disadvantages
      • Over-specialisation
      • Product dumping (export of a product at a price that is lower in the foreign market than the domestic market)

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